Melbourne's Home Buying Guide - Produced By WIN Real Estate

20/03/2019

Buying a home is likely to be the largest purchase you ever make. But it can also be one of the best long-term investments you make. The best way to ensure this is to do your homework so the property you buy is the right one for you with relation to price, location, value, size and lifestyle.

Here’s some handy tips to guide you through this process.

PREPARING TO BUY

The first thing you need to work out is your buying criteria. Many experts will offer up their opinion here but they often only have their own interests in mind. It’s imperative you do your own research so you decide what is most relevant to your home needs and desires. 
A good way to begin is via the internet. Visit sites such as www.realestate.com.au or www.domain.com.au regularly to help you start drawing up your ‘dream home’ criteria list. 
Check the published auction results in your area to ascertain the current market price. They are usually available from major real estate portals from Saturday evening and updated on a weekly basis. REIV, the Australian Society of Practising Accountants and some major banks also hold free Buying a Home seminars. 
Next, attend a few open inspections and auctions to get a feel of what’s out there but also what the process is like. 
It is also a good idea to connect with local real estate agents as they can be valuable sources of information about upcoming listings of suitable properties.

INSPECTING A PROPERTY

You should inspect a property either at the advertised time or by arranging an appointment with the real estate agent. As you inspect the home, keep in mind key variables such as the size and condition of the property as well as the proximity to schools, public transport and amenities. If you really like it, be sure to check it out during the week as well as on the weekend. A peaceful environment one day might be quite different at other times, which is always good to know. 
If you see something you like but are unsure about the quality of the home, you can get it professionally inspected. They will assess whether there are any defects that might affect your decision to buy. This is highly advisable if large-scale renovations or extensions have been done.
Both Archicentre and the Housing Industry Association (HIA) offer a specialised inspection service (the fee is usually around $400-$700). They inspect and report on the state of the property, including the structural condition and any termite potential.

ORGANISING FINANCE

It is vital you organise your finances before making an offer or bidding at an auction. Mortgage brokers are a popular choice when sourcing loans. They offer a large list of banks and other financial institutions so you can choose according to your financial profile. 
Once you’ve selected a lending partner, you will need to apply for a loan. Consider your capacity for repayments when thinking about the loan amount, factoring in any other financial commitments. Repayments should not adversely affect your lifestyle.
If approved, you can ask for a ‘pre-approval loan’ from your banking institution which can last up to three months. Make arrangements to cover the deposit should your offer or bid be successful, and arrange to have the appropriate mortgage funds available for settlement.

VENDOR'S STATEMENT (the Section 32 Certificate)

Section 32 of the Sale of Land Act requires the vendor (the person selling the property) to provide a statement about the financial, legal and planning details of the property, before a Contract of Sale or Contract Note is signed.
The Section 32 should include at least the following:
• A copy of the title showing any existing easements or covenants, land boundary measurements and location in relation to the nearest street
• Information about planning or development restrictions
• Details of any mortgage over the property
• Outgoings such as rates, body corporate fees etc if they apply
• Building restrictions and copies of permits issued for work carried out in the last seven years
For a fee, you can engage a conveyancer or solicitor to go through this document. They will highlight if they are any restrictions you should be aware of that may affect future plans for the property.

PRIVATE SALE

Buying a home via private sale means you buy the property at the advertised price or you negotiate the price with the vendor through their agent. In some cases, the property may have been ‘passed-in’ at auction because the vendor’s reserve price (the minimum they were prepared to accept) was not reached.
Buying privately allows both parties to negotiate an acceptable price, with the buyer usually starting low and the seller starting high. The negotiation continues until both parties agree on a price.

MAKING AN OFFER FOR A PRIVATE SALE

Missing out on a property that you have your heart set on can be a very disappointing experience. This often happens because the offer process is misunderstood. When making an offer to purchase a property, it is important you understand the following:
• The agent will submit all offers to the vendor.
• The property remains on the market while the vendor considers all offers. Just because your offer is the first one submitted, does not necessarily mean it will be accepted.
• Your offer may include a date by which it will lapse if not accepted.
• An offer may be made subject to a finance clause i.e. bank approval, sale of an existing property or another condition such as a builder’s inspection.
• You can make your offer conditional on certain items (such as a dishwasher) being included or excluded from the contract. Any special conditions such as these must be written into the contract.
An offer is not legally binding on both parties until the buyer and seller have signed a Contract of Sale. A contract must contain details of the property, the price, deposit and settlement terms. Once the offer is made in writing, it is then up to the vendor whether or not to accept it or whether to give other parties the opportunity to increase their original offers.
The agent is not obliged to give you another opportunity to increase your offer.
The vendor is under no obligation until they accept the buyer’s offer by countersigning the contract. 
Remember: ensure you have sighted and fully understand the Section 32 for the land before signing any contract.

COOLING-OFF PERIOD

You are entitled to a three business day ‘cooling-off’ period. This means you are legally able to withdraw from the contract if you change your mind during this time. However, it is important to remember the cooling-off period does not apply in the following circumstances:
• If the property was bought at an auction or within three business days before or after a scheduled auction;
• If the purchaser is an estate agent;
• If the purchaser has obtained independent legal advice before signing the contract;
• If the vendor and purchaser have previously entered into a Contract of Sale for the same property on substantially the same terms;
• If the property is used for industrial, commercial or farming purposes and in the case of a farm, is not more than 20 hectares in area.

CANCELING THE CONTRACT WITHIN THE COOLING-OFF PERIOD

The contract is cancelled by providing written notice to the vendor or the vendor’s agent within the cooling-off period. The purchaser is entitled to a full refund of all money paid, except for $100 or 0.2% of the purchase price, whichever is greater. For example, a vendor may keep a $1,800 deposit on a property priced at $900,000.

AUCTION

Melbourne is arguably the auction capital of the world. You must be prepared and fully understand your rights and obligations before bidding at one.

Consider these things:

1. Upon a successful final bid at auction, you must pay a 10% deposit. Some agents allow for a lesser amount but this is subject to negotiation before the auction. Please speak with the selling agent to request different agreed terms. 
Note: there is no cooling off period at auction and you are not able to place any conditions on the contract.

2. Auctions are often perceived as a method that primarily benefits the vendor but there are advantages for buyers too. It allows you to compete with other bidders in an open forum so you are well aware of all other offers being made.

3. You can always make an offer for a property before it goes to auction. This gives you an opportunity to negotiate through the agent and perhaps to stipulate any particular conditions you require for the sale. If your offer is accepted, a cooling-off period applies unless the sale occurs three business days before or after the scheduled auction date.

                        aud dl.jpg       

Audwin Wibrata is the Director of WIN Real Estate who adapts creativity from lifestyle point of view in his selling approach . He recognises the vitally important role of new technology that plays in today’s real estate market.

 For a private discussion on your plan of selling please contact Audwin on 0403 205 759 or email to audwin@winrealestate.com.au

 You can also connect with WIN Real Estate on social media at: https://www.facebook.com/winrealestate.com.au/

 #winrealestate #realestateagent #propertyauction #sellinghome #mulgraveproperty #wheelershillproperty #mulgraveagent #wheelershillagent

 


 





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